The Many Economic Applications of Shadow Price

The Many Economic Applications of Shadow Price In the strictest sense, a shadow price is any price that is not a market price. A price that is not based on actual market exchanges must then be calculated or mathematically derived from otherwise indirect data. Shadow prices can be derived for anything from a resource to a good or service. But this is just the tip of the iceberg. While economists tend to be committed to markets as a means of valuation, the lack of a market price is not necessarily a limitation of their research. In fact, economists recognize â€Å"goods† that carry societal value for which there are no markets to set a market price. Such goods might include the intangible like clean air. Conversely, economists also recognize that there exist goods that do have a market-traded value that is simply not a good representation of the good’s true societal value. For example, electricity produced from coal carries a market price that does not consider the impact or â€Å"social cost† of coal burning on the environment. It is in these scenarios that economists find it difficult to work, which is why the discipline relies on the calculation of shadow prices to give a â€Å"price-like† value to otherwise unpriced resources. The Many Definitions of Shadow Price While the most basic understanding of the term shadow price relates simply to the lack of a market price for some resource, good, or service, the meanings of the term as derived from its real-world uses relay a more complicated story. In the world of investments, shadow price can refer to the actual market values of a money market fund, which essentially refers to securities that are accounted for based on amortized cost rather than a value assigned by the market. This definition carries less weight in the world of economics. More relevant to the study of economics, another definition of shadow price denotes it as a proxy value of a good or intangible asset that is most often defined by what must be given up to gain an extra unit of the good or asset. Last, but not least, shadow prices can also be utilized to derive an inclusive value of the impact of a project, whether it be a benefit or costs, using stated preferences, making the process an extremely subjective one. In the study of economics, shadow prices are most often used in cost-benefit analyses in which some elements or variables cannot be otherwise quantified by a market price. In order to fully analyze the situation, each variable must be assigned a value, but it is important to note that the calculation of shadow prices in this context is an inexact science. Technical Explanations of Shadow Price in Economics In the context of a maximization problem with a constraint (or constrained optimization), the shadow price on the constraint is the amount that the objective function of the maximization would increase by if the constraint were relaxed by one unit. In other words, the shadow price is the marginal utility of relaxing the constant or conversely, the marginal cost of strengthening the constraint. In its most formal mathematical optimization setting, the shadow price is the value of a Lagrange multiplier at the optimal solution.

Weather for 2012 Essay

Weather for 2012 Essay Weather for 2012 Essay Weather Analysis Project This is my weather analysis project. Throughout this paper you will be informed on the weather results during the time period of August through April. Throughout my analysis you will be informed on how the precipitation, temperature and the median daylight hours have changed throughout the months and seasons. Precipitation is the measurement of the amount of rainfall. Everyone would think that spring is typically the season that would produce the most precipitations of all the flowers are growing along with the saying April shower brings May flowers. When you compare the months August and October on the graph they have the most consistent amount of rain fall. The rainfall ranges from 4.3 to 5.44 inches during those months. Though April did have a large amount of rainfall with 4.49 inches so that would support the assumption that spring brings more precipitation. Temperature is the measurement we use to quantify the sensations of hot and cold of the outside. In August the temperature was 71 degrees fahrenheit and in September the temperature started to decline all the way through the month of November. It wasn’t until December that the temperature began to rise .5 of a degree. During January and February the temperature declined back down. In March the temperature then b egan to increase once again and the temperature continued to incline into April. Median daylight hours calculate the times the sunrises and sunsets during the day. Have you ever heard of daylight savings time? If you haven’t, it is when we shift our time an hour behind in the fall and an hour ahead in the spring. The saying is fall

Bloomberg terminal Essay Example | Topics and Well Written Essays - 1750 words

Bloomberg terminal - Essay Example The case study will include an assessment of subsequent investment preferences and expected financial status upon completion of studies at the University of East London (UEL). Table of Contents Brache, A. (2008). Nine variables affect innovation within today's Enterprise Model. Tooling & Production. The Free Library. Nelson Publishing. Retrieved from http://www.thefreelibrary.com/Nine+variables+affect+innovation+within+today%27s+Enterprise+Model.-a0173644126 16 Value Click. (2013.) Book-To-Market Ratio. Investopedia US. Retrieved from http://www.investopedia.com/terms/b/booktomarketratio.asp#axzz2JE9l3c9G 17 1. Introduction Bloomberg provides the financial world with news, analytics, and financial data through several indices. After reviewing goldmines of financial data, investors must ultimately choose where to spend. Consistency during periods of recession is a string indicator of the health of most funds. Implementation of sustainability programs exist to ensure the long run succe ss of the operations. This is considered true by Fiksel in his study of the strategies employed by top international corporations to attain superior business performance (Fiksel, 1999). According to Alan Brache, 9 variables affect strategy: knowledge management, human capabilities, organizational structure, business processes, issue resolution, culture, leadership and progress (Brache, 2008). Since shareholders know only what is reported to them, concerns about how the business should operate are written. The shareholders assume the agency is operating according to the specifications of the business relationship. When this is not the case, agency costs arise. United States government regulation of stock trading by the SEC is a preventive measure in an industry plagued with fraud. Only the strong survive in the bull and bear markets. Investors must acknowledge the proper protocol of investing which consists of due diligence and research before making investments. In the context of in vesting, due diligence is defined as ‘the process by which a potential investor obtains a sufficient understanding of a business to enable him to take an informed decision on investing in that business’ (Business Week, 2012). Beyond the recession from 2007 to 2009, the saga of financial turmoil for agencies in the United Kingdom continued. On April 20, 2010, an explosion in the Gulf of Mexico released British Petroleum (BP) oil all over the Gulf of Mexico. The incident made history as the largest accidental oil spill (New York Times, 2012). Enterprise Risk Management Risk is a reality that exists in every aspect of business. Risk velocity is the rate of speed that the risk can appear and begin to develop (Steinberg, 2011). The risk appetite represents the amount of risk the company can afford to accept. Risk velocity must constantly be offset. Key Risk Indicators (KRIs) affect the speed with which risk management can control risk issues (Steinberg, 2010). The fundamenta l concepts of ERM work together to strategize against risk through objectives. Prevention is of major focus. Setting objectives and following through is the first strategy. The following lists key ERM fundamental concepts (Flaherty, 2004): An on-going process Effects every level of the organization Applied in strategy setting at every level of the organization. A portfolio view of risk Risk identification and management within risk appetite Provide assurance to management, stakeholders, and board of directors Meet

Guardian ad litem Assignment Example | Topics and Well Written Essays - 1500 words

Guardian ad litem - Assignment Example In this regard, the GAL must need to consider certain essential factors while investigating a child. A few of the major factors to be considered while asking questions to Cathy have been provided hereunder. Understanding the needs and ensure to defend the child from any type of physical and emotional harm Comprehending the views of the child and her relationship with each parent and/or other people Identifying possible changes on the child while being separated from the parents Considering practical problems of the child in terms of contacting his/her parents Considering and understanding of the child’s personal and psychological characteristics including cognitive and physical behaviors among others. Therefore, it can be affirmed that the aforementioned considerable factors would be more beneficial for both Cathy and the GAL to share along with understand the feelings while asking various types of questions (UC Davis School of Law, â€Å"In the Child’s Best Interest?à ¢â‚¬ ). DISCUSSION OF LEGAL TERMINOLOGIES With reference to the guiding principles that are often represented by the Federal and State Statutes, it can be viewed that certain essential policies ensure to protect and serve paramount interests of the child. A brief discussion about the legal terms or standards determining the best interests of the child i.e. Cathy have been provided hereunder. Ala. Code  § 12-15-101 (LexisNexis through 2012 1st Spec. Sess.). The Federal and/or State Constitution tends to protect the child from different emotional or physical harms and ensures to select appropriate individual amid the parents with whom the child is likely to be stayed (UC Davis School of Law, â€Å"In the Child’s Best Interest?†). In relation to the case scenario, the GAL should highly focus on justifying and understanding the emotional along with the physical characteristics of Cathy and making effective decisions of identifying appropriate parent. Moreover, the provi sions in this legal terminology also ensures the deliverance of fundamental rights and needs incorporating adequate care, food, appropriate medical care facilities, cloths along with other remedial elements of the child. D.C. Code Ann.  § 16-2353 (LexisNexis through 7-18-12). With reference to the sections of the Federal and State Statutes, the court is authorized to protect the child through applying standards concerning the rights and responsibilities of the parents. Moreover, the section also tends to ensure extent feasibility of the child’s opinions regarding his/her own personal interests (UC Davis School of Law, â€Å"In the Child’s Best Interest?†). Therefore, it can be stated that the primary roles of the parents generally include adequate care and welfare of the child along with proper arrangement of shared responsibilities to nourish the child as per her basic needs. Moreover, maintaining effective cooperation amid the parents has also been identifie d to ensure serving best interests of the child. Fla. Stat. Ann.  § 39.810 (LexisNexis through 2012 Sess.). In order to act with the purpose of serving paramount interests of Cathy, the guiding principles of the Federal and State constitution can also ensure keeping the child in a suitable custody with a relative or any close caregiver (UC Davis School

Research Proposal Essay Example | Topics and Well Written Essays - 1500 words - 3

Research Proposal - Essay Example All the countries round the world are concerned about the carbon footprints and its effects. The developed countries have already taken various measures and adopted policies under the Kyoto Protocol. The other developing countries are taking steps towards reduction of greenhouse effect but none of them have accepted the international legal bindings to do so (Ackerstein, and Katherine, 2007; Ginsburg, and Bloom, 2004). This study would be focusing on green marketing, which would not only include the corporate strategies of the multinationals towards manufacturing and selling their products in an eco-friendly manner, but also analyze the other functions of the companies, which also depict their eco-friendly initiatives such as adoption of green accounting, and eco-friendly promotional strategies. Few well-known multinational companies would be chosen to discuss their green strategic framework within which environment friendly production, operation, promotion, supply chain, and even fin ancial practices would be comprehensively discussed. 1.2 Research Objectives The aim of this research study is to scrutinize the eco-friendly marketing strategies that are adopted by the multinational companies. The major objectives would be to recognize the green or eco-friendly strategic framework of few multinational companies, and evaluate the benefits that these companies enjoy for such an initiative. 1.3 Research Questions The research questions have been formulated in line with the aims and objectives of this research study. They are stated below: Q1: How does the multinational companies segment their target market on the basis of customers; preference for green marketing or products? Q2: What prerequisites are considered for selecting green marketing strategies in these companies? Q3: How does the marketing mix change when the company chooses to shift towards green marketing? Q4: What benefits or advantages companies enjoys after adopting eco-friendly strategies? Q5: How doe s green accounting benefit multinational companies? Chapter II: LITERATURE REVIEW Literature review assist in evaluation of scientific theories and literature that has been identified through research. These are information available through existing database on green marketing and related strategies adopted by the companies in the past and also during the present business environment. These information or data in turn also assist in laying foundation for further research studies. Ginsberg and Bloom (2004), stated in order to proceed with conducting a research on the stated research question, firstly, a rich understanding on green marketing and the preferences of the customers for it, has to be gained. Various research studies show that in order to identify the target market in this case, there is requirement for customers’ tendency towards green marketing (Fuller, 1999; Coddington, 1993). There is no fixed green marketing strategy on the basis of which all the companies desi gn their strategic framework. It depends on the aims, objectives, mission, and vision of the company (Polonsky and Charter, 1999). The consumption of energy and change in climate are closely related. Multinationals

Ryanair: Performance Objectives

Ryanair: Performance Objectives Ryanairs five performance objectives to maintain or ultimately increase Ryanairs competitiveness, it is useful to analyse its operations with the help of five performance objectives: Quality: In the long run, even the most competitive price structure will not attract customers if the quality of the service offered is below a certain standard. This includes maintenance, efficient booking and luggage handling, reliability, punctuality, and interaction with Ryanair staff. Speed: The areas where speed matters most for Ryanair are turnaround time of aircrafts, reservations, luggage handling, and aircraft maintenance, all of which have a direct impact on costs. Although Ryanair has implemented many steps to increase speed, it also depends on service providers that are not directly under its control. Dependability: This compares very favourably with competitors, where punctuality is similar, but the missed bag/passenger ratio is orders of magnitude higher. This excellent record has to do with the fact that Ryanair offers only point-to-point flights, thereby eliminating the risk of luggage mismanagement during connecting flights. Flexibility: Customers have a high degree of flexibility in choosing the level of service, since only the basic airfare is charged and any additional services must be paid for. Increasing flexibility for the customer would mean offering additional options. From Ryanairs perspective, flexibility comes with diversification of supplementary services on the one hand, and, with increasing market strength, the ability to negotiate alternatives for various service sectors, such as maintenance agreements, outsourced functions, etc. Cost: The fuel price is one of the direct costs for any airline operations. There are enormous fluctuations, and, unlike its competitors, Ryanair has committed to a policy of not imposing fuel surcharges. Therefore, the fuel price become fluctuations and Ryanair takes consider of that action. As a result, Ryanair reported its first annual loss in 2009 when oil prices were at a record high. (BBC Online News, 21 June 2009) International Competition: Ryanair is one of the most successful low cost carriers in Europe. The phenomenon strategy for long-term sustainable which Ryanair has developed from Southwest airlines is cut-cost to gain in high profitable in market share. According to Gillen and Lall (2004) stated that Ryanair has taken step further of Southwest operational, therefore, Ryanair has strongly and clearly position regarding to the airline does not offer any frills such as, no providing service, no ticket, no connection, no travel agents, no frequent flyer programme as well as food and beverages are sell on board. However, Ryanair can keep the cost low and gain more profit by setting the cheaper fares to customer regarding to increase the cash flow. In addition, according to the economic crisis and the fuel price has been increased, it effected to all airlines industry. However, it seems not really effected to Ryanair. Based on that, in 2009, Ryanair has aggressively discounted fares to increase the pressure on its com petitors and increase the cash flow. (Euromonitor International 2010) Nevertheless, Ryanair has been very tactical and acted very quickly to get advantage out of the competitors. Moreover, the competitors of Ryanair, for example, in Western Europe are mostly the schedule airlines such as, Lufthansa, Air France-KLM Group, British Airways, and Easyjet. Therefore, Easyjet is the direct competitor of Ryanair. Furthermore, the competitors in Eastern Europe are mainly budget airlines such as, Wizz Air (Hungarian airlines) as well as the schedule airlines Aeroflot (Russian airlines), LOT (Polish airlines) and, CSA (Czech airlines). In this case, Ryanair claim to increase the traffic to compete with cometitors by operate more routes. However, the competitive advantage of Ryanair that helped Ryanair to maximine growth which require the location advantage by using the secondary airports that located not far away from the city. For example, Gillen and Lall (2004) stated that at Hahn airport ne ar Frankfurt, the number of passengers increased from 450,000 in 2001 to 1.5 million in 2002, due to Ryanair serving that airport. Easyjet tend to have the same direction, however, Ryanair negotiation with secondary airports, often located in economically depressed areas, Ryanair bargained hard for low fees compare to EasyJet. On the other hand, Gillen and Lall (2004) stated that EasyJet is not entirely secondary airport based and so it does seek to attract some business customers. Based on that, Easyjet has more cost regarding to the airport fees. In addition, one of the advantages of Ryanair is rapid turnaround time than other airlines. According to (Barret 2004) stated that the shorter turnaround times permit more journeys per plane which, coupled with the higher seat density of Ryanair planes, generate lower seat mile costs. Based on that, Ryanair planes are mostly flying and it savings more cost of the airport fees in term of the landing charge. According to Ryanair report (201 0), Ryanair received award of being punctual and less in baggage lost Based on the short-haul point to point routing, hence, (Barret 2004) stated that the punctuality performance of Ryanair is high, therefore, the simple point to point is not delayed the passenger and check-in is quicker because is less complex than an interline one. According to table 1, staff of Ryanairs were non union, (Vlaar et al. 2005) stated that the consequence is flexible workforces enable low-cost airlines to fly and support each aircraft with only eighty workers, compared to the employees that required by traditional network carrier. For instant, Ryanair focus on the tight cost control measures. Pilots and cabin crew received lower salaries than other industries, however, the employees received significant variable compensation such as, the commissions on on-board sales. (ibid) Table 1. Some distinctive features of Ryanairs business model Choice Consequence Secondary airports à ¯Ã†â€™Ã‚   Low airport fees Lowest ticket price à ¯Ã†â€™Ã‚   Large volume Low commissions to travel agents à ¯Ã†â€™Ã‚   Low cost Standardized fleet of 737s à ¯Ã†â€™Ã‚   Bargaining power with suppliers Single-class à ¯Ã†â€™Ã‚   Economies of scale High-powered incentives à ¯Ã†â€™Ã‚   Attract combative team No meal à ¯Ã†â€™Ã‚   Faster turnaround Nothing free à ¯Ã†â€™Ã‚   Additional revenue Spartan headquatres à ¯Ã†â€™Ã‚   Low fixed cost No unions à ¯Ã†â€™Ã‚   Flexibility in rostering staff Source: Casadesus-Masanell R, and Ricart J E, 2010 cited from Strategy to Business Models to Tactics As a result, (Vlaar et al. 2005) concluded that Ryanairs business model is a simple product, low operating cost, and differential positioning which they focused on leisure, VFS (visiting friends and relative). Based on that, the value proposition is good fit with these customer segments. More importantly, (Casadesus-Masanell and Ricart 2010) concluded that Ryanair plan of action create a unique and valuable position by engaging in a new set of activities. Based on that, Ryanair found the way to operate the company more efficiency amongst the competitors by create the value for their stakeholders. International emerging markets The Ansoff product-market expansion grid is useful for Ryanair to visualise and identify market opportunities. Therefore, Ryanair establishing a partnership with Wizz Air, it helps company penetrate non-EU markets, synergies can benefit in both party. Regarding to, the market development Ryanair striving to target in business travellers by offering them more benefits such as refundable tickets in terms of more flexible. Moreover, Ryanair consider of the product development by plan to open the new route to US for long-haul, with flight tickets starting at EUR10 according to the Open Skies Agreement between the EU and the US. Based on that, Ryanair could attract more young generation travellers who has low income but would love to experience in Hollywood place.

Ice and Sand :: essays research papers

Ice and sand is an eye opening video about just what the title states: ice and sand. It talks about the polar ice caps and the affects of green house gasses to the environment. This movie talks about what would happen if the ice sheets in the north and South Pole melt, and how weather systems are changeable. It talks about the sands in the Sahara and how they blow all the way to Paris, it also states that it is largest dessert in the world. This movie is very informative about â€Å"Ice and Sand†.   Ã‚  Ã‚  Ã‚  Ã‚  In the movie â€Å"Ice and sand† it talks about the polar ice caps. These ice caps are located at the north and south poles of the Earth, and take up a large potion of the earth’s water. Ice caps fluctuate from year to year, growing and shrinking with weather changes. Greenhouse gasses are causing these ice caps to melt more and more every year though. If the ice caps were to melt completely, it would raise our ocean level ten to twenty stories about what it is now. This would send places like Nova Scotia, Vancouver, and New York completely under water. Scientists are not really quit sure what will happen with green house gases, whether they will cause a flood from melting the ice caps, or whether it will send us into another ice age. If it were to send us into another ice age, only people in very southern countries would be likely to survive due to the extremely cold whether. Scientists have determined that weather systems are changeable. Over a large amount of time, the earths tilt changes, causing the axis’s to tilt more one way then it used to, and thus changing the weather. Greenhouse gasses may also change the weather, making our climate either much hotter or much cooler. Ice caps and deserts have one thing in common, one small change in the weather can change them- and they will change the world. The Sahara desert is known as the largest dessert in the world, it covers a third of the continent of Africa. The thing about the desert is that it is always changing, new vegetation is sprouting and animals are dying and being born. During the day the desert is very hot, about 50 degrees Celsius, but at night time temperatures can drop very low. In the night is when the desert rains, for temperatures are too hot during the day for clouds to accumulate above them, and water is limited so there isn’t much precipitation.